Prepare for Market Panic!
'America's Per Capita Government Debt Worse Than Greece,' as well as Ireland, Italy, France, Portugal, and Spain:
I don't know why this would not be plastered all over the Internet to scare the hell out of the U.S. population and wake them up, "worse than Greece". A chart passed along to the Weekly Standard from Senator Sessions office, ranking budget committee member.
Full-Blown Civil War Erupts On Wall Street � Financial Elite Start Turning On Each Other
Really interesting article, I am surprised it took so long for this to come out, let's see if it gets to the mainstream or traditional sources of financial media.
Finally, after trillions in fraudulent activity, trillions in bailouts, trillions in printed money, billions in political bribing and billions in bonuses, the criminal cartel members on Wall Street are beginning to get what they deserve. As the Eurozone is coming apart at the seams and as the US economy grinds to a halt, the financial elite are starting to turn on each other. The lawsuits are piling up fast. Here�s an extensive roundup:
Time to put your Big Bank shorts on! Get ready for arun� The chickens are coming home to roost� The Global Banking Cartel�s crimes are being exposed left & right� Prepare for Shock & Awe�
Well, well� here�s your Shock & Awe:
First up, this shockingly huge $196 billion lawsuit just filed against 17 major banks on behalf of Fannie Mae and Freddie Mac. Bank of America is severely exposed in this lawsuit. As the parent company of Countrywide and Merrill Lynch they are on the hook for $57.4 billion. JP Morgan is next in the line of fire with $33 billion. And many death spiraling European banks are facing billions in losses as well.
FHA Files a $196 Billion Lawsuit Against 17 Banks
The Federal Housing Finance Agency (FHFA), as conservator for Fannie Mae and Freddie Mac (the Enterprises), today filed lawsuits against 17 financial institutions, certain of their officers and various unaffiliated lead underwriters. The suits allege violations of federal securities laws and common law in the sale of residential private-label mortgage-backed securities (PLS) to the Enterprises.
Complaints have been filed against the following lead defendants, in alphabetical order:
1. Ally Financial Inc. f/k/a GMAC, LLC � $6 billion
2. Bank of America Corporation � $6 billion
3. Barclays Bank PLC � $4.9 billion
4. Citigroup, Inc. � $3.5 billion
5. Countrywide Financial Corporation -$26.6 billion
6. Credit Suisse Holdings (USA), Inc. � $14.1 billion
7. Deutsche Bank AG � $14.2 billion
8. First Horizon National Corporation � $883 million
9. General Electric Company � $549 million
10. Goldman Sachs & Co. � $11.1 billion
11. HSBC North America Holdings, Inc. � $6.2 billion
12. JPMorgan Chase & Co. � $33 billion
13. Merrill Lynch & Co. / First Franklin Financial Corp. � $24.8 billion
14. Morgan Stanley � $10.6 billion
15. Nomura Holding America Inc. � $2 billion
16. The Royal Bank of Scotland Group PLC � $30.4 billion
17. Soci�t� G�n�rale � $1.3 billion
The Age of Bank Failures
By Greg Hunter�s USAWatchdog.com
The U.S. stock market surged yesterday on news the European Union (EU) would deploy a two trillion euro rescue fund to help get its sovereign debt crisis under control. This news was so good even battered Bank of America stock jumped more than 10%. Crisis averted? Hold on, not so fast. Some big French banks are in trouble because they are up to their necks with sovereign debt. Naturally, President Nicolas Sarkozy wants action now. Yesterday, the Financial Times (FT.com) reported the French leader said, �. . . an unprecedented financial crisis will lead us to take important, very important decisions in the coming days.� Raising the sense of urgency, the French president added: �Allowing the destruction of the euro is to take the risk of the destruction of Europe. Those who destroy Europe and the euro will bear responsibility for resurgence of conflict and division on our continent.� (Click here to read the complete FT.com story.)
Jim Rickards of Tangent Capital says you have to distinguish between the bonds, banks and the euro. He said recently in an interview on King World News, �The bonds are definitely going to crash and burn. The bonds are toast. . . . The banks own the bonds, and if the bonds are toast, the banks are toast. . . . But that doesn�t mean the currency is toast.� (Click here for the complete King World News interview with Mr. Rickards.) Rickards expects the euro currency will survive, but many banks will not.
Reggie Middleton of Boombustblog.com says the reason for the coming bank failures is simple�high debt loads. Middleton says many European banks have 40 to 1 leverage. He recently explained how dangerous this was by saying, �I take a dollar and I borrow $39, and I go out and buy something with it. All you need is a 2% move to totally wipe you out�100%. And we all know a lot of sovereign bonds have moved a whole lot more than 2%.� (Click here to see more of Middleton on the Boombustblog.com.) Middleton is expecting more European bank runs as the crisis picks up speed.
China, Russia quit dollar
I am surprised the dollar did not drop on this news. This could spell the beginning of the end for the Dollar as reserve status.
St. Petersburg, Russia � China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.
Chinese experts said the move reflected closer relations
between Beijing and Moscow and is not aimed at challenging the
dollar, but to protect their domestic economies.
�About trade settlement, we have decided to use our own currencies,� Putin said at a joint news conference with Wen in St. Petersburg.
The two countries were accustomed to using other currencies, especially the dollar, for bilateral trade. Since the financial crisis, however, high-ranking officials on both sides began to explore other possibilities.
The yuan has now started trading against the Russian rouble in the Chinese interbank market, while the renminbi will soon be allowed to trade against the rouble in Russia, Putin said.
�That has forged an important step in bilateral trade and it is a result of the consolidated financial systems of world countries,� he said.
Putin made his remarks after a meeting with Wen. They also officiated at a signing ceremony for 12 documents, including energy cooperation.
The documents covered cooperation on aviation, railroad construction, customs, protecting intellectual property, culture and a joint communiqu. Details of the documents have yet to be released.
Putin said one of the pacts between the two countries is about the purchase of two nuclear reactors from Russia by China�s Tianwan nuclear power plant, the most advanced nuclear power complex in China.
Putin has called for boosting sales of natural resources � Russia�s main export � to China, but price has proven to be a sticking point.
Russian Deputy Prime Minister Igor Sechin, who holds sway over Russia�s energy sector, said following a meeting with Chinese representatives that Moscow and Beijing are unlikely to agree on the price of Russian gas supplies to China before the middle of next year.
Russia is looking for China to pay prices similar to those Russian gas giant Gazprom charges its European customers, but Beijing wants a discount. The two sides were about $100 per 1,000 cubic meters apart, according to Chinese officials last week.
Wen�s trip follows Russian President Dmitry Medvedev�s three-day visit to China in September, during which he and President Hu Jintao launched a cross-border pipeline linking the world�s biggest energy producer with the largest energy consumer.
Wen said at the press conference that the partnership between Beijing and Moscow has �reached an unprecedented level� and pledged the two countries will �never become each other�s enemy�.
Over the past year, �our strategic cooperative partnership endured strenuous tests and reached an unprecedented level,� Wen said, adding the two nations are now more confident and determined to defend their mutual interests.
�China will firmly follow the path of peaceful development and support the renaissance of Russia as a great power,� he said.